Morley Fund Management, Europe's largest property fund manager, today announced that its Central European Industrial Fund (CEIF) has closed oversubscribed.
Morley Fund Management, Europe's largest property fund manager*, today announced that its Central European Industrial Fund (CEIF) has closed oversubscribed.
Ben Stirling, fund manager who heads up the European property team at Morley, said that Morley had been forced to turn some investors away because the demand was so high.
“We are increasingly being asked by UK and European clients to invest in European real estate. Return prospects have started to look more favourable in continental Europe than the UK, and allied to the strong diversification characteristics of a continental European property exposure we are seeing particular demand from UK investors at present."
CEIF which was launched in August last year is a joint venture between Morley and Teesland iOG, the listed property company. The fund will invest €500m in Central European multi-let industrial estates over three years, with approximately €140m already invested in 13 estates across Poland, Hungary, Czech Republic and Romania.
CEIF aims to achieve a distribution yield of more than 9.5% a year and an internal rate of return (IRR) of over 12% per annum.
CEIF has €200m in total equity. The final closing raised €147m from nine investors including two Dutch pension funds, PGGM and TKP, and UK institutions including ING, Henderson and Schroders. Gil Bar of Morley is responsible for fund management of CEIF while Teesland iOG is responsible for asset management.
Morley revealed plans to invest Ł1 billion in continental European property two years ago. Since then it has invested Ł1.2 billion and now has a team of 10 people dedicated to European property.
Last week Morley launched the German Retail Investment Property Fund (GRIP).
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*Oxford Property Consultants, 31 December 2005. Based on funds under management in Europe (inc UK).
For further information please contact:
Strahan Wallis
Corporate Communications
Telephone: 020 7809 8618
Notes to editors:
Morley Fund Management
Awards:
- 2006, Property Fund Manager of the Year, Pensions Management Awards
- 2006, Property Fund Manager of the Year, Property Week Awards
- 2006, Outstanding Company of the Year Award, CEE Real Estate Quality Awards
- 2006, Investor of the Year Award, CEE Real Estate Quality Awards
- 2005, UK Pensions Awards Property Manager of the Year
- 2004, Property Week Fund Manager of the Year Award
- 2003, Property Fund Manager of the Year, Pensions Management Awards
The Morley property team consists of over 70 investment professionals and manages a range of funds on behalf of institutional, pension and retail clients. Morley has been at the forefront of innovation in property fund management and has launched eleven specialist sector based funds with partners, including: Igloo Regeneration Fund, Quercus Healthcare Property, The Junction and The Mall.
Further information about Morley Fund Management can be found at www.morleyfm.com or www.morleyproperty.com